KUNO Real Estate

As I said in my previous blog the safest place to place your money is real estate. When all the scandals started earlier this decade such as the Enron debacle, I took all my money out of Wall Street and placed it all in my properties, paid my principals down. I am so glad that I did. There was 2 trillion dollars lost in the stock market with-in 2 weeks. Even 401K programs are not safe. Do not let someone else control your money. If you want to invest in real estate do what I did and buy multi-unit buildings. It will be some time before people will be able to qualify for a mortgage because of tighter lending restrictions ( higher credit scores and more down payment money). People have to live some where that is why the rental industry is a hot market. If you manage your real estate investments wisely it is a very gratifying business. I personally make 28% return on my buildings and that is awesome. My favorite to buy is 4 unit buildings. With a 4-unit you can still get residential interest rates not commercial. 1 to 4 family units fall under residential interest rate guidelines. Anything over 5 or 6 units or more under one building falls under commercial mortgage guidelines. A commercial mortgage you need minimum 20% down payment and it’s with a higher interest rate. Each commercial lender is different but usually it’s 1 to 1.5 points higher than residential rates.

With a residential loan you can put 5% down (FHA) owner-occupied as one example. I purchased my first 4-unit this way. So 4-units make it easy to buy and sell because of less down payment and lower interest rates than a building that has more units under one building. I am not saying do not buy 10-unit buildings. Like any building you buy, if the numbers are their go for it. If you make 20% return on your money with a 10-unit building at a 9% commercial interest rate go for it. It’s playing with the numbers. The point I am trying to make is it’s easier to qualify for 4 unit buildings and easier to sell because the average person can afford a 4-unit. I specialize in this market because that is what I do.

I can teach anyone that is willing to learn and watch how it will make a difference in your financial portfolio. You have to sacrife material things such as new cars, boats these items are called de-constructive debt. This is the hardest thing for most people to not have. Constructive debt is real estate, this is one example. Once you are in a position than you can buy your toys. Most Americans need a second job to match what our parents were making 40 years ago because the dollar could buy so much back than. With real estate you do not have to be there from 9 to 5. Think about that! You are at your primary job and your secondary job is making money and you are not even there! In 18 years re-finance the building to pay for your childs colleage education. The best part you get to write off the interest, depreciation and maintenance on taxes. My vision is (because of our economics) you need to have more than one building to keep your family's financial needs going and owning appartments is the way to do just that. It helps combat the decline in the dollar and hourly wage losses. One building for each child for education needs, another building for your medical needs and so on. I pay for my own health care and it's $320.00 a month (no dependants) and by the time I am 65 my montly paymet will most likely be $1200.00. I will take my positive cash flow from one building to cover my medical expenses. Vision for the future. You can not depend on social security or 401k programs. You need to manage your money yourself!!!!!!!!!!!!! 

I here all the stories of why people do not want to buy appartments because of having tenants. Number 1 these are people that have fear in them selves and right off the bat have a negitive attitude. Stay away from negitive people period!!! The key is knowing what to by, what to look for, return on your investment and of coarse what most of the mistakes people make that turns them off is preventative maintenance. What I do is every 2 years is have all the furnaces cleaned and thermo-couplers replaced. This is one example. If you maintain the property now it will save you time and money in the long run. Just by doing little things will make you sleep at night instead of getting a call at 2am that the tenants furnace is not working. This is how you make money in real estate! Having the vision to foresee future problems. This is why big time property managers get paid the big bucks because of preventitive maintenance.

If you want the best to help you be an investor call KUNO!!!!!!!

Remeber it's not how big the company is, it's how good your Realtor is!!

HOME BUYERS!!!!!

To all home buyers it's still a great market to buy especially foreclosures. We can help you fix up that foreclosure if you are not willing to do it yourself. But not all foreclosures need major repair just some old fashion elbow grease. Its one stop shopping from your purchase to the final product.

Please do not listen to the media about no money to lend. There is money out there you need higher credit scores and a little more down payment money than in past years. Interest rates are still great. Remeber I know what to look for in a home. I could tell you everything that may need to repaired now or in the future and then compare other homes in the area to come up with what price to offer. We have saved thousands for our clients. Knowing the construction business in how homes were built and the differnt styles used is how you know you have the best Realtor out there. That is another of many benifits that helps me achive all my goals for my clients.

You can not beat all this experience!!!!!!!   

Please call Kuno Real Estate for all your real estate needs!